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Salaried taxpayers: What to check for your next ITR in 2026 and 2027

The 2026 tax-law change affects income earned from 1 April 2026 onward—not the AY 2026–27 return for FY 2025–26. Here are the payroll, form and reconciliation checks salaried taxpayers need.
From TheFinanceBase Team5 min to read
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The return you file in 2026 for income earned from 1 April 2025 to 31 March 2026 is still governed by the Income-tax Act, 1961. The Income-tax Act, 2025 took effect on 1 April 2026 and applies to income earned from that date; its first return, for Tax Year 2026–27, is due in 2027. If you are preparing the earlier return now, its ordinary 31 July 2026 due date has passed, so check the official portal for current filing options and your circumstances.

First identify which income period you are filing for

“Next ITR” can mean two different returns during this transition. For income earned in FY 2025–26, the return is for AY 2026–27 and uses the 1961 Act and its existing return forms. The ordinary non-audit individual due date listed by the Income Tax Department was 31 July 2026; as of 7 October 2026, that date has passed. The available guidance does not establish whether an extension or other relief applies to an individual case, so check the portal for current filing availability and applicable consequences. Income Tax Department return FAQ and return-of-income guidance

For income earned from 1 April 2026 onward, the 2025 Act applies. It replaces “previous year” with “tax year”; income earned in FY 2026–27 is called Tax Year 2026–27, and its return is due in 2027. The department says taxpayers filing AY 2026–27 returns in 2026 continue to use forms under the 1961 Act. Income Tax Department transition FAQ CBDT commencement announcement

What should salaried taxpayers check for the AY 2026–27 return?

Choose the return form based on all your income

Salary alone does not determine which ITR form you can use. Check every income source, asset and other circumstance against the current form instructions. For AY 2026–27, the Income Tax Department’s ITR-1 FAQ lists exclusions that include foreign-source income, signing authority in a foreign account, deferred tax on employee stock options, brought-forward or carry-forward losses, and income above ₹50 lakh. The FAQ also identifies allowance to report income from up to two house properties and a field for unrealized rent. These are details of the AY 2026–27 ITR-1 FAQ, not a substitute for checking your complete eligibility. Income Tax Department ITR-1 FAQ

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Reconcile income and tax credits before filing

Employer withholding is not a substitute for reporting income, and a tax deduction at source (TDS) entry does not guarantee the credit is correctly reflected in your return. Compare payslips and employer tax information with your Annual Information Statement (AIS), annual tax-credit details, bank interest and dividend records, and broker capital-gains statements. Investigate mismatches rather than silently omitting an item or assuming a credit will appear later. The department’s ITR-1 guidance and the checklist attributed to tax practitioner Isha Sekhri in Mint both point taxpayers toward reconciling available income and tax information. Income Tax Department ITR-1 FAQ Mint, 6 October 2026

Check payroll declarations against evidence

Sekhri’s checklist, as reported by Mint, recommends checking which tax regime payroll used, HRA city classification and landlord details, deduction declarations and supporting proofs, perquisites, and salary and TDS from a previous employer. Keep rent agreements, rent receipts and other records supporting the claims you make. If you changed jobs, make sure the new employer received the relevant salary and TDS information from the former employer. Raise discrepancies with payroll promptly and retain your declarations and evidence. These are operational suggestions attributed to the expert, not individualized legal advice. Mint expert checklist

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How the Income-tax Act, 2025 changes the transition-year paperwork

The new Act’s commencement does not move the FY 2025–26 return onto new forms. The Income Tax Department says the new Act applies from 1 April 2026, with “tax year” used for income earned from then on; AY 2026–27 filing in 2026 remains under the 1961 Act. That distinction matters when comparing references on payroll documents with those in the return you are filing. Income Tax Department transition FAQ

Mint’s 6 October 2026 article, citing Sekhri’s comparison, reports these mappings. They are useful signposts when reading new-act material, but should not be used alone to calculate an individual liability or determine a filing form. Confirm the applicable law, notified rules and current portal instructions for the relevant tax year. Mint comparison

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Topic 1961 Act reference reported by Mint 2025 Act reference reported by Mint
Salary definition and perquisites Sections 17(1) and 17(2) Sections 16 and 17
Salary deductions Section 16 Section 19
House rent allowance (HRA) Section 10(13A) Schedule III and Rule 279
Leave travel allowance (LTA) Section 10(5) Schedule III
Default tax regime Section 115BAC Section 202
Rebate Section 87A Section 156
Sections 80C and 80D Sections 80C and 80D Sections 123 and 126
Additional NPS deduction Section 80CCD(1B) Section 124(3)
Salary and other TDS; TCS Sections 192 and 194-series; Section 206C Sections 392, 393 and 394
Capital gains Sections 111A, 112 and 112A Sections 196, 197 and 198
Return of income Section 139 Section 263

The same Mint report lists these corresponding form references. It reported that return forms for Tax Year 2026–27 had not been notified as of its 6 October publication. Check the official portal for current forms and utilities before filing; the new references below should not be treated as forms for the AY 2026–27 return covering FY 2025–26. Mint form mapping Income Tax Department transition FAQ

Existing form or item New form reference reported by Mint Purpose as described in the report
Form 16 Form 130 Salary TDS certificate
Forms 12BB and 12BA Forms 124 and 123 Employee claims declaration and employer perquisite details
Regime declaration Form 122 Regime declaration
Form 26AS Form 168 Tax-credit information
Forms 24Q, 26Q and 27Q Forms 138, 140 and 144 TDS returns
Forms 15G and 15H Form 121 Declaration forms
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What to track for income earned from April 2026

Keep records that will make the 2027 return easier to reconcile

For Tax Year 2026–27, retain your payslips, employer declarations and supporting documents, and periodically compare income and tax-credit information with AIS and the records available to you. Track interest, dividends and investment sales as they occur rather than relying solely on the year-end salary certificate. Sekhri’s checklist also recommends using AIS feedback to flag incorrect entries and considering advance tax where income without TDS could leave tax unpaid; assess your own circumstances rather than assuming payroll withholding covers all tax due. Mint expert checklist

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Compare regimes using your own eligible claims

The Income Tax Department says the new regime continues under section 202 of the 2025 Act and is the default. It also says an option previously exercised under an equivalent provision of the old Act is treated as carried into the new Act. Do not assume the default is best for you: compare estimated tax under the available choices using deductions and exemptions you are actually eligible to claim, along with the effect on payroll withholding. Income Tax Department transition FAQ

When to get help with a discrepancy

If salary, TDS or tax-credit figures do not match, start with the employer or institution that reported the information and keep a record of your request and supporting documents. Sekhri’s checklist, as reported by Mint, says to ask an employer to file a Form 138 correction when a tax-credit gap requires it. The same report says the July–September TDS return is due by 31 October; because the applicable form and deadline depend on current rules, verify the requirement with official guidance before relying on that date. Mint expert checklist

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Consider help from a qualified Indian tax practitioner if your income includes multiple employers, foreign assets or income, business or professional earnings, complex capital gains, carried losses, or unresolved credit mismatches. The correct form and treatment turn on the complete facts and rules for the relevant year, not salary status alone.

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